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Universal backs free music offer
"Offering young consumers an easy-to-use alternative to pirated music sites will be compelling," Spiralfrog Chief Executive Robin Kent said.
Mr Kent, the former head of the Universal McCann advertising agency, added that his research suggested that in return for free music, young people would be willing to endure adverts - as long as the brands and products were relevant to them.
'Shrewd move'
US-based music industry legal specialist Josh Lawler said news of the new service was "inevitable".
"It's a very shrewd move by Universal," he told BBC News.
"The music industry is going to a point where all delivery will probably be some form of downloading or streaming."
Figures from the International Federation of Phonographic Industries (IFPI) estimate that for each legal download, 40 are done illegally.
Mr Lawler added that the success of Myspace had underlined the power of the internet to make or break artists - as well as proving that advertising-based formats can work.
Funding question
But while Spiralfrog is discussing possible deals with other big record firms, questions still remain over how the artists featured on Spiralfrog will be paid.
Many of the models sold are also expected to be incompatible with Apple's online record store - such as Sony's Walkman.
At the same time, numerous companies are jumping on the downloads bandwagon.
Entertainment retailers HMV and Virgin already offer music downloads, while music television channel MTV has opened its own online shop, Urge.
Microsoft is preparing to launch a music store to go with its Zune player, made by Toshiba, which is popularly viewed in the industry as an "iPod killer".
Story from BBC NEWS: http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/5294842.stm
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